Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Teradata Corporation    TDC

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Teradata, IBM Agree To Buy Digital Marketing Providers

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/02/2012 | 09:13pm CEST

--Teradata and IBM each to buy marketing technology companies

--Both are targeting the area to help drive growth

--Deals expected to close this quarter

(Updates throughout with details about IBM's deal and analyst comments.)

 
   By Shara Tibken 
   Of  
 

Teradata Corp. (>> Teradata Corporation) and International Business Machines Corp. (IBM) on Wednesday each unveiled agreements to buy digital marketing technology companies, bolstering their offerings in the sector and heightening their rivalry.

Teradata said it agreed to buy German firm eCircle, which helps marketers create targeted digital campaigns through email, social media and mobile devices. Such cloud-based products allow customers, like European retailer Otto Group, to send personalized digital messages to their clients and boost revenue.

IBM, meanwhile, said hours after Teradata's announcement it is acquiring Tealeaf Technology, a provider of analytics software that helps organizations gain insight into consumer behavior online and on mobile devices. The technology allows marketers to glean real-time information to improve customer support and website usability, tailor marketing campaigns and increase online purchase conversion rates.

Neither company disclosed financial terms of their deals. Both acquisitions are expected to close in the current quarter.

Teradata and IBM--as well as other tech companies such as Oracle Corp. (ORCL)--compete in the market for data analytics, technology that helps companies sift through massive amounts of information to solve business problems or make predictions. Marketing is one of the main areas targeted for analytics, with many organizations seeking to automate and gain real-time insight into customer buying habits.

While the two acquired companies don't directly compete, they both fit into IBM and Teradata's overall rival strategies, Forrester analyst Rob Brosnan said.

"Both are looking to fill out different components of their marketing platforms," he said. "Marketers increasingly are spending a lot of their own budgets--on average, about 30%--on this marketing technology, and IBM and Teradata want to be where the money is."

The large technology providers have been active in acquiring companies in the sector. The eCircle buy marks Teradata's second marketing purchase in the past couple years. The company acquired marketing-management company Aprimo for $525 million in late 2010. And IBM, which has dubbed the area "smarter commerce," has spent more than $3 billion to acquire similar companies.

Teradata Chief Marketing Officer Darryl McDonald said the price his company is paying for eCircle isn't material to financial results, but the acquisition should "start being incremental to business" in 2013.

"We are very excited about the additional impact it will have on our business," McDonald said. "They have over 1,000 customers and have been growing in the 25% range over the last five years and profitable for the last five years."

Teradata plans to offer eCircle's technology as a standalone product, as well as integrate it with Teradata's Aprimo marketing-management business.

"By the end of the year, we'll have a fully integrated offering where we can do end-to-end campaign management," said Bob Boehnlein, president of Teradata's Aprimo business.

He said Teradata will now be able to not only run companies' marketing functions with its current applications but also deliver the messages marketers want to distribute. And Teradata will be able to use its business intelligence technology to analyze the effectiveness of the messages, grow existing customers, attract new customers and increase revenue.

eCircle's customer base is predominantly in Europe, but Teradata plans to expand its presence globally. Executives said the company will be setting up two data centers in the U.S. this year and replicating the technology for North America and South America customers. Next year, it will take a similar approach in Asia.

"This is a Big Data problem for marketing organizations and chief marketing officers," McDonald said. "And it's a big market opportunity for Teradata."

Tealeaf, meanwhile, has over 450 customers, including 30 of the Fortune 100 companies. Most of the customers, which include giants like Dell Inc. (DELL) and Wells Fargo & Co. (WFC), are in financial services, travel, retail and communications services. IBM said it plans to integrate San Francisco-based Tealeaf into its enterprise marketing and management group.

"With these new capabilities from Tealeaf, we can not only provide chief marketing officers and other marketing leaders the qualitative insights into how customers actually experience their brands, but show them how to react in real time across marketing, sales and service," Craig Hayman, IBM general manager of industry solutions, said in a press release.

-By Shara Tibken, Dow Jones Newswires; 212-416-2189; [email protected]

Stocks mentioned in the article : Teradata Corporation
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on TERADATA CORPORATION
09/21 TERADATA : Pre-Market Technical Recap on Data Storage Devices Stocks -- Seagate ..
09/19 TERADATA : Real-Time Insight Benefits Fortune 150 Refining Business
09/09 TERADATA : Datometry and Pivotal Host Seminar on Re-Platforming Teradata in Week..
09/08 TERADATA : Datometry and Pivotal Host Seminar on Re-Platforming Teradata in Week..
09/06 TERADATA : QuickPivot Appoints Bob Boehnlein as New CEO
09/01 TERADATA : Fast-Growing Online Commerce Giant Mercado Libre Migrates to Teradata..
08/23 TERADATA CORP /DE/ : Change in Directors or Principal Officers (form 8-K)
08/23 TERADATA CORPORATION (NYSE : TDC) Files An 8-K Departure of Directors or Certain..
08/09 Lundin Law PC Announces an Investigation of Teradata Corporation
08/09 FARUQI & FARUQI, LLP : is Investigating Teradata Corporation (TDC) on Behalf of ..
More news
News from SeekingAlpha
08/03 DAILY INSIDER RATINGS ROUND UP 8/1/1 : Iff, reta, tdc
08/03 Teradata - When Analyst Disdain Can Be A Good Thing
07/29 Teradata Corporation 2017 Q2 - Results - Earnings Call Slides
07/27 Teradata (TDC) Q2 2017 Results - Earnings Call Transcript
07/27 Teradata misses by $0.06, misses on revenue
Financials ($)
Sales 2017 2 106 M
EBIT 2017 225 M
Net income 2017 48,2 M
Finance 2017 313 M
Yield 2017 -
P/E ratio 2017 117,04
P/E ratio 2018 73,92
EV / Sales 2017 1,82x
EV / Sales 2018 1,76x
Capitalization 4 154 M
Chart TERADATA CORPORATION
Duration : Period :
Teradata Corporation Technical Analysis Chart | TDC | US88076W1036 | 4-Traders
Technical analysis trends TERADATA CORPORATION
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 22
Average target price 29,6 $
Spread / Average Target -10%
EPS Revisions
Managers
NameTitle
Victor L. Lund President, Chief Executive Officer & Director
Jim M. Ringler Chairman
Stephen Mark Scheppmann Chief Financial Officer & Executive Vice President
Stephen Brobst Chief Technology Officer
David E. Kepler Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
TERADATA CORPORATION21.35%4 154
INTERNATIONAL BUSINESS MACHINES CORPORATION-12.57%135 252
ACCENTURE17.73%88 913
TATA CONSULTANCY SERVICES LIMITED6.02%73 974
AUTOMATIC DATA PROCESSING3.90%48 064
VMWARE, INC.38.64%44 637